ExxonMobil In Talks With Turkish LNG Over $1.1 Billion Deal, FT Reports

(CTN News) – Turkey has been in talks with ExxonMobil in hopes of striking a multibillion-dollar deal aimed at purchasing liquefied natural gas (LNG), in order to reduce its dependence on Russian energy, according to Sunday’s Financial Times.

There is no doubt that ExxonMobil Corporation is the largest direct descendant of John D. Rockefeller’s Standard Oil Corporation, being an American multinational oil and gas corporation.

Alparslan Bayraktar, the Energy Minister of Türkiye, stated in an interview with the Financial Times that Türkiye’s goal is to establish a “new supply portfolio” so as to diminish reliance on any single component of its energy system.

Bayraktar says Turkey will be able to secure 2.5 million tonnes of LNG each year through a long-term deal with ExxonMobil.

The pact under discussion could last over a decade, Bayraktar stated, indicating the potential longevity and significance of the proposed agreement. It should be noted, however, that the commercial terms of the agreement with ExxonMobil are still subject to negotiation.

ExxonMobil intends to expand its LNG portfolio by 40 million tonnes per year by 2030, according to the Financial Times.

Exports of Russian goods to Europe decreased

As a result of geopolitical tensions, including the conflict in Ukraine, Russian exports to Europe have declined, with European nations increasingly turning to LNG from global sources.

A report from LSEG indicates that Russian exports of liquefied natural gas (LNG) to Europe decreased 1.9% in 2023 to 15.8 million metric tons.

Despite recent successes in the exploration of oil in Turkey, particularly in the northern Black Sea region and in the south, the nation remains heavily reliant on imports from countries such as Russia, Azerbaijan, and Iran, as well as LNG imports from Algeria, Qatar, the United States, and Nigeria.

New Turkish project, Koca Yusuf TP1500

Moreover, Turkey’s Ministry of ExxonMobil Energy and Natural Resources has announced that drilling operations have begun in the Gabar field using the “Koca Yusuf TP1500,” a drilling rig produced domestically.

The objective of this initiative is to increase Türkiye’s daily oil production to 100,000 barrels by the end of the year, thereby demonstrating the nation’s commitment to enhancing its energy independence.

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